DURA Automotive Reports Fourth Quarter and Full-Year 2005 Results and Announces Restructuring Plan.ROCHESTER Rochester (rŏch`ĕstər, –ĭstər). 1 City (1990 pop. 70,745), seat of Olmsted co., SE Minn.; inc. 1858. HILLS, Mich. -- DURA Automotive Systems Dura Automotive Systems (Pink Sheets: DRRAQ), headquartered in Rochester Hills, Michigan, USA was ranked in the 2006 Fortune 1000. It is engaged in the business of manufacturing and distribution of automotive components. , Inc. (Nasdaq:DRRA DRRA Dynamic Radio Resource Allocation ), today reported revenues of $564.4 million for the fourth quarter ended December December: see month. 31, 2005 compared to $582.8 million in the prior year quarter. Net income for the quarter was $10.3 million, or $0.54 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared to net income of $1.9 million, or $0.10 per diluted share, in the prior year quarter. DURA's adjusted income from continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the for the quarter, which excludes facility consolidation charges, a gain on retirement of debt and the favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. settlement of certain environmental matters totaled $0.9 million, or $0.05 per diluted share, compared to income of $4.8 million, or $0.26 per diluted share, in the prior year quarter. Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization) A metric used to show a company's profitability, but not its cash flow. EBITDA became popular in the 1980s to show the potential profitability of leveraged buyouts, but has become for the quarter was $46.6 million compared to $46.5 million in the prior year quarter. A reconciliation of adjusted income from continuing operations and adjusted EBITDA to the most directly comparable GAAP GAAP See: Generally Accepted Accounting Principles GAAP See generally accepted accounting principles (GAAP). measures is set forth below. "Although our fourth quarter and full year results came in within our expectations, these results are not acceptable and we need to continue to focus our efforts on changing DURA going forward," said Larry Lar´ry n. 1. Same as Lorry, or Lorrie. Denton Denton, city (1990 pop. 66,270), seat of Denton co., N Tex.; inc. 1866. The city lies in an agricultural and industrial region, but the economy is based on education and research. The Univ. of North Texas, Texas Woman's Univ. , chairman and chief executive officer of DURA Automotive. The decrease in fourth quarter revenue from the prior year was driven primarily by lower North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. automotive production by the domestic OEM's and the negative impact of foreign currency exchange. Partially offsetting these decreases was the strength of the recreation vehicle industry. Fourth quarter income from continuing operations increased from the prior year as net raw material cost improvements and the favorable resolution of certain environmental matters offset the impact of the lower domestic OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and automotive volumes. The $5.2 million pre tax facility consolidation charge for the quarter relates primarily to the previously announced headcount head count or head·count n. 1. The act of counting people in a particular group. 2. The number of people counted in this way. Noun 1. reductions associated with DURA's plan to migrate to one enterprise resource planning See ERP. (application, business) Enterprise Resource Planning - (ERP) Any software system designed to support and automate the business processes of medium and large businesses. system and the continuation continuation - continuation passing style of the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). actions in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. and Germany Germany (jûr`mənē), Ger. Deutschland, officially Federal Republic of Germany, republic (2005 est. pop. 82,431,000), 137,699 sq mi (356,733 sq km). . During the fourth quarter of 2005, DURA took the opportunity to reduce its Subordinated Subordinated A claim ranked lower in priority than other claims. Common stock claims are always subordinated to debt. Notes by $49 million. This decision is consistent with its long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. reduction strategy. DURA spent $31 million of cash, resulting in a gain on retirement of debt of $18 million in the quarter. Full-Year Results For the year ended December 31, 2005, revenue totaled $2.3 billion compared to $2.5 billion in 2004. Net income for the year ended December 31, 2005 was $1.8 million, or $0.10 per diluted share, compared to net income of $11.7 million, or $0.62 per diluted share, in the prior year. DURA's adjusted loss from continuing operations for the year ended December 31, 2005, which excludes facility consolidation charges, a net gain on retirement of debt and the favorable resolution of certain environmental matters, totaled $6.4 million, or $0.34 per diluted share; as compared to adjusted income from continuing operations of $29.4 million, or $1.56 per diluted share, in the same period last year. Adjusted EBITDA for the year ended December 31, 2005 was $170.9 million compared to $210.9 million in the prior year. This was within the range of DURA's previously released guidance. Restructuring Plan Denton continued, "We have made progress toward achieving our organic growth and worldwide cost leadership goals over the past three years, however, we are not moving fast enough. We must accelerate our growth and profitability enhancement plans to meet our strategic goals by 2008. Over the next two years, DURA will complete a significant restructuring of our worldwide operations designed to enhance performance optimization optimization Field of applied mathematics whose principles and methods are used to solve quantitative problems in disciplines including physics, biology, engineering, and economics. , worldwide efficiency and financial results." The restructuring plan will impact over 50 percent of DURA's worldwide operations either through product movement or facility closures. DURA will complete this action by year end 2007. In addition, DURA's purchasing organization will aggressively cut costs throughout its supply chain resulting in a significant reduction of annual purchasing costs. Cash costs for the restructuring plan are expected to be approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $100 million. These costs will relate primarily to employee severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when , capital investment, facility closure and product move costs. The majority of these expenditures will occur by year end 2007. DURA expects a three year payback Payback The length of time it takes to recover the initial cost of a project, without regard to the time value of money. on the investment. The savings are expected primarily through a lower average global wage rate, lower cost of purchased materials and operating efficiencies gained as a result of the facility consolidations and reorganizations. "We will finance the restructuring plan with cash on hand and availability under our existing revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility," said Keith Keith may refer to: People with the given name Keith:
Conference Call A conference call to review the fourth-quarter and full-year results is scheduled for February February: see month. 9, 2006 at 11 a.m. ET. Interested participants may listen to the live conference call or replay over the Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the by logging onto the investor relations Investor relations The process by which the corporation communicates with its investors. section of the company's Web site, www.duraauto.com. A recording of this call also will be available until 6 p.m. ET on Thursday Thursday: see week. , February 16, 2006 by dialing (303) 590-3000, passcode 11050774. About DURA Automotive Systems, Inc. DURA Automotive Systems, Inc., is a leading independent designer and manufacturer of driver control systems, seating control systems, glass systems, engineered assemblies, structural door modules and exterior trim systems for the global automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide. . The company is also a leading supplier of similar products to the recreation vehicle (RV) and specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. vehicle industries. DURA sells its automotive products to every North American, Japanese Japanese (jăp'ənēz`), language of uncertain origin that is spoken by more than 125 million people, most of whom live in Japan. There are also many speakers of Japanese in the Ryukyu Islands, Korea, Taiwan, parts of the United States, and and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. original equipment manufacturer (OEM) and many leading Tier 1 automotive suppliers. DURA is headquartered in Rochester Hills, Mich. Information about DURA and its products is available on the Internet at www.duraauto.com. Use of Non-GAAP Financial Information In addition to the results reported in accordance Accordance is Bible Study Software for Macintosh developed by OakTree Software, Inc.[] As well as a standalone program, it is the base software packaged by Zondervan in their Bible Study suites for Macintosh. with accounting principles generally accepted in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. ("GAAP") included throughout this news release, the Company has provided information regarding "adjusted income (loss) from continuing operations" and "adjusted EBITDA" (non-GAAP financial measures). Adjusted income from continuing operations represents income from continuing operations adjusted for facility consolidation and other charges, net, the favorable settlement of certain environmental matters and gain on retirement of debt, net. Adjusted EBITDA represents income from continuing operations adjusted for facility consolidation and other charges, a gain on retirement of debt, the favorable resolution of certain environmental matters, interest, amortization, depreciation and taxes. Management believes that adjusted income from continuing operations and adjusted EBITDA are useful to both management and investors in their analysis of the Company's ability to analyze an·a·lyze v. 1. To examine methodically by separating into parts and studying their interrelations. 2. To separate a chemical substance into its constituent elements to determine their nature or proportions. 3. operational performance. Adjusted income (loss) from continuing operations and adjusted EBITDA should not be considered in isolation or as a substitute for net income or other income statement data prepared in accordance with GAAP, or as a measure of profitability or liquidity. Also, adjusted income (loss) from continuing operations and adjusted EBITDA, as determined and presented by the Company, may not be comparable to related or similarly titled measures reported by other companies. Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. This press release contains forward-looking statements that are subject to risks and uncertainties. These statements often include words such as "believe", "expect", "anticipate", "intend", "plan", "estimate", or similar expressions. These statements are based on certain assumptions that the company has made in light of its experience in the industry as well as its perspective of historical trends, current conditions, expected future developments and other factors it believes are appropriate in the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact. 2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or . Actual results may differ materially from the anticipated results because of certain risks and uncertainties, including but not limited to (i) expected synergies, economies of scale and cost savings from the company's acquisitions not being fully realized or realized within the expected times frames; (ii) unanticipated difficulties servicing the indebtedness INDEBTEDNESS. The state, of being in debt, without regard to the ability or inability of the party to pay the same. See 1 Story, Eq. 343; 2 Hill. Ab. 421. 2. of the company; (iii) costs or operational difficulties related to integrating the operations of the acquired entities with those of the company being greater than expected; (iv) labor disputes involving the company or its significant customers; (v) risks associated with conducting business in foreign countries, and (vi) general economic or business conditions affecting the automotive industry, either nationally or regionally, being less favorable than expected.
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Amounts in thousands, except per share amounts - unaudited)
Three Months Ended Twelve Months Ended
December 31, December 31,
------------------- -----------------------
2005 2004 2005 2004
--------- --------- ----------- -----------
Revenues $564,404 $582,802 $2,344,139 $2,492,543
Cost of sales 496,827 521,624 2,086,421 2,214,113
--------- --------- ----------- -----------
Gross profit 67,577 61,178 257,718 278,430
Selling, general and
administrative expenses 36,860 33,156 155,901 150,489
Facility consolidation,
asset impairments and
other charges 5,247 3,730 11,397 21,817
Amortization expense 117 111 434 445
--------- --------- ----------- -----------
Operating income 25,353 24,181 89,986 105,679
Interest expense, net 25,631 22,840 100,021 89,535
Gain on retirement of debt (18,154) - (14,805) -
--------- --------- ----------- -----------
Income from continuing
operations before
provision for income
taxes and minority
interest 17,876 1,341 4,770 16,144
Provision (benefit) for
income taxes 7,551 (621) 2,687 3,672
--------- --------- ----------- -----------
Income from continuing
operations before
minority interest 10,325 1,962 2,083 12,472
Minority interests in
income (67) - (177) -
--------- --------- ----------- -----------
Income from continuing
operaitons 10,258 1,962 1,906 12,472
Income(loss) from
discontinued operations 14 (50) (92) (749)
--------- --------- ----------- -----------
Net income $10,272 $1,912 $1,814 $11,723
========= ========= =========== ===========
Basic earnings per share:
Income from continuing
operations $0.55 $0.10 $0.10 $0.67
Discontinued operations - - - (0.04)
--------- --------- ----------- -----------
Net income $0.55 $0.10 $0.10 $0.63
========= ========= =========== ===========
Basic shares outstanding 18,769 18,626 18,709 18,508
========= ========= =========== ===========
Diluted earnings per
share:
Income from continuing
operations $0.54 $0.10 $0.10 $0.66
Discontinued operations - - - (0.04)
--------- --------- ----------- -----------
Net income $0.54 $0.10 $0.10 $0.62
========= ========= =========== ===========
Diluted shares outstanding 20,068 18,828 18,849 18,868
========= ========= =========== ===========
Capital expenditures $33,891 $23,245 $78,581 $67,208
Depreciation $17,615 $18,519 $79,078 $82,943
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
ADJUSTED INCOME FROM CONTINUING OPERATIONS
ADJUSTED EBITDA
(Amounts in thousands, except per share amounts - unaudited)
Three Months Twelve Months
Ended Ended
December 31, December 31,
----------------- -------------------
2005 2004 2005 2004
-------- -------- --------- ---------
Adjusted income (loss) from
continuing operations
--------------------------------
Income from continuing
operations
before minority interest $10,325 $1,962 $2,083 $12,472
Facility consolidation and other
charges, net 3,320 2,876 7,326 16,951
Favorable settlement of
environmental matters, net (1,132) - (6,375) -
Gain on retirement of debt, net (11,619) - (9,476) -
-------- -------- --------- ---------
Adjusted income (loss) from
continuing operations $894 $4,838 $(6,442) $29,423
======== ======== ========= =========
Basic earnings (loss) per share:
Adjusted income (loss) from
continuing operations $0.05 $0.26 $(0.34) $1.59
======== ======== ========= =========
Basic shares outstanding 18,769 18,626 18,709 18,508
======== ======== ========= =========
Diluted earnings (loss) per
share:
Adjusted income (loss) from
continuing operations $0.05 $0.26 $(0.34) $1.56
======== ======== ========= =========
Diluted shares outstanding 18,779 18,828 18,709 18,868
======== ======== ========= =========
Adjusted EBITDA
--------------------------------
Operating Income $25,353 $24,181 $89,986 $105,679
Amortization expense 117 111 434 445
Depreciation expense 17,615 18,519 79,078 82,943
Facility consolidation and other
charges 5,247 3,730 11,397 21,817
Favorable settlement of
environmental matters (1,768) - (9,960) -
-------- -------- --------- ---------
Adjusted EBITDA $46,564 $46,541 $170,935 $210,884
======== ======== ========= =========
DURA AUTOMOTIVE SYSTEMS, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Amounts in thousands)
December 31, December 31,
Assets 2005 2004
-------------------------------------------- ------------ ------------
Current assets:
Cash and cash equivalents $101,889 $191,568
Accounts receivable, net 291,119 273,956
Inventories, net 132,148 149,834
Current portion of derivative instruments - 7,746
Other current assets 107,650 92,016
------------ ------------
Total current assets 632,806 715,120
------------ ------------
Property, plant and equipment, net 458,258 487,106
Goodwill, net 854,296 903,584
Noncurrent portion of derivative instruments - 10,601
Deferred income taxes and other assets, net 129,212 107,510
------------ ------------
$2,074,572 $2,223,921
============ ============
Liabilities and Stockholders' Investment
-------------------------------------------
Current liabilities:
Accounts payable $265,560 $270,341
Accrued liabilities 178,150 187,254
Current maturities of long-term debt 3,473 2,968
------------ ------------
Total current liabilities 447,183 460,563
------------ ------------
Long-term debt, net of current maturities 171,577 150,898
Senior notes 400,000 400,000
Subordinated notes 523,906 589,469
Mandatorily redeemable convertible trust
preferred securities 55,250 55,250
Senior notes - hedging mark-to-market value
adjustment (10,781) 18,347
Minority Interests 4,864 -
Other noncurrent liabilities 142,859 141,903
Stockholders' investment:
Common stock - Class A 188 186
Additional paid-in capital 351,994 351,571
Treasury stock (1,948) (2,513)
Retained deficit (91,528) (93,342)
Accumulated other comprehensive income 81,008 151,589
------------ ------------
Total stockholders' investment 339,714 407,491
------------ ------------
$2,074,572 $2,223,921
============ ============
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